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getting back to Normal

The Past, Present & Future Of Real Estate On The Emerald Coast

By Jeff & Gay Landreth

As seen in the Winter 2006 Emerald Coast edition of Condo Owner

ACCURATE INFORMATION

The most important thing in any marketplace is information. Economics 101 teaches us perfect information is one of the essential elements of the perfect market economy. The purpose of this article is to provide the reader more accurate information regarding the real estate condominium market on the Emerald Coast from Perdido Key to Panama City Beach.

Word Of Mouth

All too often we see conjecture that cannot be substantiated but is something that was simply heard and now taken as fact. The fact is we have experienced a frenzy in the Emerald Coast market over the past 18 months which resulted in the mass migration or Gold Rush to Destin Florida and the surrounding areas. This era will be referred to as the Frenzy Period (FP) for the purpose of this article.

Everyone Jumps In

People have left professional jobs and moved to the land of the Sugary white Sand in hopes of striking it rich. Many sought their real estate license as the key to untold riches, others like the professional builder of small neighborhoods became a high-rise "Developer" and bought beachfront to build a 23 story high-rise, and countless others tagged themselves as the real estate " Investor" with investor rolling off their tongue with hubris that rivals a Greek tragic hero simply because they have put a $5,000 to $10,000 reservation deposit on a preconstruction condo.

Irrational Exuberance?

Not to say all of those that have settled in this market do not have the knowledge and experience to succeed in the aforementioned areas, because many are more than competent and have experience and ideas that help to provide a level of quality and long term value to the coast. It just appears that those with the least experience and knowledge make the most noise when it comes to the current state of the market by making comparisons of the Frenzy Period to what a time that Greenspan would probably qualify as "irrational exuberance." They erroneously hold this FP as the benchmark by which they compare today's market.

Purpose

In this article we will address the current state of our market to dispel any "chicken little" reactions to what is historically a traditional market. Our conclusions are based on historical sales data, some of the elements that affect this market and how increasing construction costs will affect condominium supply. We will reassure those that currently hold preconstruction contracts and properties and reinforce their smart decision to purchase along the coast while encouraging those that have not yet entered the market to go forth with confidence as this area has much room for growth for those with staying power and essential long term goals necessary for investment in any real estate market. This reassurance is based on over twenty-five years of extensive real estate experience specializing in the condominium market from conceptualization to closing as well as experience in selling and brokering high-rises and planned neighborhoods, relationships and interviews with experienced Developers, Construction lenders, General Contractors, and economists, as well as personal investing experience and sales to solid real estate Investors that have purchased prior to and during the Frenzy Period.

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